Bank of America posts lowest LCR to date
Bank of America’s liquidity coverage ratio (LCR) dropped to its lowest level since the bank started reporting the measure in 2017.
The firm’s LCR – which is calculated by dividing its stock of high-quality liquid assets (HQLA) by its total net cash outflows over a 30-day stress period – fell to 120% from 122% in the three months to end-September, and from 126% in the year-ago quarter.
Bank executives said the fall could be related to changes made to its liquidity model.
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